The study by Samuelson and Zeckhauser (1988), about retirement funds, is a demonstration of what form of decision avoidance caused by emotional factors?

Question

Quizplus · Accepted Answer

Samuelson and Zeckhauser's study showed that people were more likely to stick with the status quo option (i.e. not changing their retirement fund) than to actively make a decision and switch to a new fund. This is a demonstration of status quo bias, where people have a preference for keeping things the way they are and avoiding the effort and uncertainty of making a change. Emotional factors likely play a role in this bias, as people may feel more comfortable and secure sticking with what they know.

The Study by Samuelson and Zeckhauser (1988), About Retirement Funds